There is a little-known section in Obamacare that restricts how much health insurance companies can deduct for executive compensation in their federal income taxes.
Prior to Section 9014, the corporations were capable to write off massive CEO compensations. For instance, former Anthem Inc. (NYSE: ANTM) CEO Angela Braly decided to leave the company in the year 2012 because of shareholder criticism. Under Braly, the ANTM stock price had fallen as far as 20 percent from the month of January 2012 to August 2012. Yet even though she disappointed shareholders, Braly was yet capable to net $20 million before leaving.
What is worse is that Anthem was capable to write off nearly all of the $20 million as deductible "performance pay," in accordance to Fortune.
Now, under 9014, the deductions for executive pay shrank from 96 percent to 27 percent for the 10 greatest publicly held health insurers in the year 2013 (the most recent available data).
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